Eternal shares decline 2% after Q2 earnings

Shares of food delivery and quick commerce firm Eternal, which owns the Zomato and Blinkit brands, on Friday ended nearly 2 per cent lower, a day after reporting its second quarter earnings, which failed to cheer investors.

The stock dipped 1.64 per cent to settle at Rs 342.70 apiece on the BSE. During the day, it dropped 4.20 per cent to Rs 333.75. On the NSE, the stock fell by 1.49 per cent to Rs 342.65 after declining 4.05 per cent to Rs 333.75 during the day. Eternal on Thursday reported a consolidated net profit of Rs 65 crore for the second quarter ended September, with the quick commerce business contributing significantly to its revenue growth.

The company, which re-branded itself as Eternal in March, had reported a net profit of Rs 176 crore in the June-September quarter of the last fiscal. In a regulatory filing, Eternal said the results are not comparable with the corresponding quarter last year on account of the acquisition of Orbgen Technologies Pvt Ltd and Wasteland Entertainment Pvt Ltd, holding the ‘movie ticketing’ and the ‘events’ businesses, respectively, from One 97 Communications Ltd (Paytm’s parent firm), which completed in August 2024.

In a letter to shareholders, Eternal said it expects “a slow uptick in growth rate in the near term” for the food delivery net order value (NOV) for Zomato, due to multiple headwinds, including soft discretionary consumption, impact of quick commerce growth and increasingly volatile weather conditions.